EU/ACP tug of war over sugar quota deadline

The EU Agriculture and Fisheries Council, who met in Brussels on 18th March 2013, proposed to advance the deadline for ending sugar quotas for Africa, Caribbean and Pacific countries (ACP). The initial 2020 deadline previously suggested by the European parliament on 13 March has been pulled back to 2017 by the European council, whereas the EU commission would even prefer 2015. Negotiations between parliament and commission will continue until 20 June in order to confirm an exact date.

Sugar quotas are decided within the Single Common Market Organisation (SCMO) where producers benefit from an EU-funded scheme intended to assist crop growers. Quotas limit the maximum quantity of sugar benefiting from a guarantee on price and on disposal.

The ACP/LDC countries feel that the 2017 deadline is too short to allow for adaptation, modernisation, diversification and improvement of their competitiveness.

However, according to the head of soft commodities of Ecobank - a commercial entity operating in several African regions - the end of sugar quotas could encourage further intra-African trade in sugar given Ethiopia and Nigeria’s current plans to increase production.

(ICTSD Bridges Africa)

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Date Posted

May 29 2013